What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

The new U.S. tax law is likely to increase after-tax cash flows for U.S.-based companies by anywhere from 10% to 20%, depending on their current tax position. As we approach earnings season, investors should listen carefully to what CEOs plan to do with the money. There’s a strong argument that they should invest in growth, and the newly available cash offers them a unique chance to do so.

Unfortunately, too many are likely to squander the opportunity. While growth-oriented investments aren’t hard to recognize, CEOs need to be convinced to make them.  My latest HBR piece highlights three particular areas companies should consider. You can read the full article at HBR.org.